due diligence

Beware The Real Estate Boom.

Bidding wars are again getting to be the rule rather than the exception in Toronto and Vancouver. Recent articles in the Globe & Mail (1, 2) describe multiple offers resulting in properties going for more than $100,000 over list!!

In the event of a real estate boom,
here are two major, serious issues to watch out for.

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Want to Rezone Real Estate? Diligence Is Crucial!

From time to time, my clients come in and they’re all excited! They’ve found a piece of property and it’s zoned for one use, but it would be so much better if it was zoned for a different use. For example, a property zoned for duplexes would be way better if you could build a 4 plex.

“Barry, how much trouble is it to rezone this property so I can build a 4 plex? There are already a couple of 4 plexes on the block. Give me an estimate of how much time it will take, how much it will cost?” Continue reading →

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Things to consider when changing your real estate strategy from single-family to multifamily. How your success changes the attitude of family and friends. One way to raise your multifamily down payment.

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Podcast Episode 22: “How Snoopy Should You Be?”

Commercial financing of real estate, (usually six units or more ) is different than retail financing. Lenders have their own lawyers and require more diligence. If buying in a corporation your lawyer usually has to provide the lender’s lawyer an opinion that your corporation is properly incorporated with the power to make a purchase and mortgage property. Your minute book must be up to date or delays will occur. Lenders usually won’t lend to someone who has gone bankrupt. In a joint venture ask your partner, “have you ever been bankrupt?”

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Text Notes for Podcast Episode 22: “How Snoopy Should You Be?”

Commercial financing of real estate, (usually six units or more ) is different than retail financing. Lenders have their own lawyers and require more diligence. If buying in a corporation your lawyer usually has to provide the lender’s lawyer an opinion that your corporation is properly incorporated with the power to make a purchase and mortgage property. Your minute book must be up to date or delays will occur. Lenders usually won’t lend to someone who has gone bankrupt. In a joint venture ask your partner, “have you ever been bankrupt?”

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This blog is a place to share my 40+ years of experience as a lawyer and real estate investor. My practice is based in Edmonton, Alberta, but much of the content here will be applicable to Western Canada and beyond. I’ll be posting useful information on the legal side of real estate investment as audio podcasts and full text handouts, both of which are based on my popular Tales from the Trenches presentations for the Real Estate Investment Network (REIN). There will also be information about paying less tax when selling real estate or a business, upcoming events, and other exciting news.